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Does Your block Have Subdivision Potential?

Determining how many new lots can be created through developing your property is indicated by the zoning. There are many other factors such as shape and slope that need to be considered before you purchase a potential development site that may impact on the yield [number of lots].

The R-Codes is the initial indicator to determine the number of lots that can be created through sub-division. However, it is imperative to understand that each local council applies the R-Codes slightly differently and their application of the codes will have an impact on the number of lots that can be created. The local authorities have the capacity to amend their views on how they may apply the codes, so it is good practice to discuss with the local authority the development proposal.

Most council’s post information in regards to zoning requirements in the council’s town planning scheme, which can be found on their website.

Some factors in identifying your sites subdivision potential

There are no hard and fast rules for identifying your properties subdivision potential, but here are some factors that can improve the possibilities for your development site.

Is your property at least 700sqm in land size?

Local councils all have their own individual guidelines on the minimum land size required to subdivide, so be sure to check with their local planning scheme’s first, however properties larger than 700sqm generally have more potential to be subdivided.

Does your property have room for a driveway to service separate lots?

If your property is going to be divided into numerous lots, you will need to ensure that there is enough room for a driveway to be installed to provide access to these additional dwellings. If your block is too narrow and bordered by other properties, it may not be feasible to subdivide due to access way restrictions.

Is your block level?

In most cases flat land is simpler and cheaper to subdivide than a sloping site. A sloping site will require retaining walls in order to level the new lots. Depending on the positioning of the retaining walls, they may cause access problems or restrict the number of lots that can be created. If your site requires retaining, the cost of developing the site increases, which may not add to the value of each lot.

Do you understand the local zoning rules?

Good practice is to check with your local council that the property you want to subdivide complies with zoning rules.

Many developers make healthy returns on small to medium size subdivisions.  Be aware there are potential risks and the process is can complex. Make sure you do your due diligence before subdividing and seek professional help to get your development application and project off the ground. Specialist development builders, such as Ventura Developments, who are well versed in subdivision are a good place to start.

Ventura Developments and Multi Living Developments offer a free consultation service so you can see if developing is an option for you. Call (08) 9241 1600.